Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. GDP growth slipped in 2001-03 as the global downturn, the high value of the pound, and the bursting of the "new economy" bubble hurt manufacturing and exports. Output recovered in 2004, to 3.2% growth, then slowed to 1.7% in 2005 and 2.7% in 2006. " (Exxun.com, 2007)
The Economy of the United Kingdom can be classified as the "capitalist" economy. The most prominent characteristic of the capitalist economy is the control of few people on a large amount of Capital. These people are also responsible for taking important economic decisions.
With the changing international circumstances the Governments of the world including United Kingdom felt the need of restricting the use of power of a specific group of people for their own commercial interests. This intervention resulted in shape of the British economy which can described as a "mixed" economy, with government playing an important role along with private enterprise.
Although British people often disagree about exactly where to draw the line between their beliefs regarding, both free enterprise and government management, the mixed economy they have developed has been remarkably successful.
The natural resources are considered as the most important ingredient of a nation's economic system. ...Show more